Annuity & Retirement Planning

Tag: canadian

The last week of October this year saw a large benefit for two or more million pensioners from the Conservative Government.

Keith MacIntyre, a tax partner with Grant Thorton in Halifax was quoted a saying that “it can save retirees a considerable amount of money” and that “pension income splitting can be a gigantic benefit for people. ”

How to start your calculation

The higher income spouse or common law partner, should assume most or all of the housing expenses, leaving the lower income partner with more money to invest.

And this action has run on effects. Reducing the income of the lower income partner could reduce or eliminate the clawback of the Old Age Security payments or the age credit for the higher income spouse.

Neither of these benefits should be overlooked. And there can be further tax savings if both partners can claim the pension income credit.

Life Annuity Retirement Benefits

Life annuities from a company pension plan can also be split, no matter the age.

And for those over 65, RRIF and life annuity payments from a RRSP can also be split by filing a joint election form.

So for pensioners it is the real income that is split as opposed to the family tax cut. So if, for example one receives $750 a month and the other $250, they can each receive $500 monthly if they are at least 60 years of age.

Calculation

If all this seems a bit much, we suggest you speak to an accountant; they are the experts.

One of the largest UK papers, The Daily Telegraph, has just released a report “UK retirement vs the best in the world” that says 2 important things about the annuity market in Canada. It compares various statistics from our website LifeAnnuites.com with figures gleaned from other world sources.

Firstly, like the UK but not necessarily elsewhere, pensions are directed to the purchase of annuities but also allow for drawdown products like a RRIF. An annuity guarantees you an income for all your life but a RRIF can be drawn down to zero, leaving you with no income at the end of your life. And here it is important to remember that the difference between an old man and elderly gentleman, is money.

Secondly here in Canada, annuity rates are better, possibly because annuities are issued with less bells and whistles. In the UK and elsewhere, annuity issuers can differentiate between smokers and non-smokers and those with health problems. All these procedures take time and money spent elsewhere is not available for you.

How to get the best GIC & RRSP interest rates in Canada?

Our GIC & RRSP interest rates tables compare the Best Interest Rates in Canada. Canadians who want to invest in Guaranteed Investment Certificates (GIC) or Registered Retirement Savings Plans (RRSP) can choose from the list of the best interest rates from all the Canadian banks, trust companies, credit unions and insurance companies in Canada.

2013 GIC Interest Rates (GIC non-registered)

Best GIC Interest rates as of January 29, 2013

Financial Institution

MinimumDeposit

Term in Years

1

2

3

4

5

Bank of Montreal Agt S.

1,000

1.150

1.300

1.400

1.600

2.050

Bank of Nova Scotia Agt

1,000

1.450

1.700

1.900

2.200

2.350

Canadian Tire Bank Agt.

5,000

1.350

1.700

1.900

2.000

2.400

Canadian Western Bank

5,000

1.500

1.900

2.050

2.200

2.350

Coast Capital Svgs Agt.

1,000

2.000

2.100

2.250

2.350

2.500

Concentra Fin. Agt Ser.

10,000

1.150

1.300

1.400

1.600

2.000

HSBC Bank Canada Agt. S

5,000

1.550

1.900

2.000

2.200

2.400

HSBC Mortgage Corp. Agt

5,000

1.550

1.900

2.000

2.200

2.400

HSBC Trust Agent Servic

5,000

1.550

1.900

2.000

2.200

2.400

ICICI Bank Canada

1,000

.250

.500

1.000

1.000

1.000

Laurentian Bk Agent Ser

1,000

1.450

1.900

2.050

2.150

2.350

Montreal Trust Agt. Ser

1,000

1.450

1.700

1.900

2.200

2.350

NatCan Trust Agent Ser.

1,000

1.550

1.900

2.050

2.250

2.450

National Bank Agent Ser

1,000

1.550

1.900

2.050

2.250

2.450

National Trust Agent S.

1,000

1.450

1.700

1.900

2.200

2.350

Royal Bank

5,000

1.450

1.700

1.900

2.150

2.300

Scotia Mtge Corp. Agt.

1,000

1.450

1.700

1.900

2.200

2.350

Vancity Savings

5,000

1.650

1.750

2.100

2.150

2.250

AGF Trust

5,000

1.450

1.900

2.050

2.150

2.350

ATB Financial

1,000

1.400

1.550

1.750

1.650

2.000

AcceleRate Financial

1,000

2.050

2.250

2.450

2.600

2.850

Achieva Financial

1,000

2.050

2.250

2.450

2.600

2.850

Advisor’s Advantage Tr.

1,000

1.450

1.550

1.800

2.050

2.200

Alterna Bank

500

1.450

1.750

1.950

2.000

2.300

Alterna Savings

500

1.450

1.750

1.950

2.000

2.300

B2B Bank

1,000

1.450

1.900

2.050

2.150

2.350

Bank West

5,000

1.500

1.800

1.950

2.050

2.100

Boomerang Credit Union

500

1.100

1.200

1.350

1.600

1.900

Caisses Desjardins

1,000

.900

1.200

1.250

1.600

1.750

Canada Life

1,000

.800

1.050

1.200

1.250

1.300

Canadian Western Trust

5,000

1.250

1.350

1.600

1.850

2.200

Community Trust

1,000

1.200

1.550

1.750

1.800

2.050

DUCA Financial Services

500

1.450

1.700

1.900

2.000

2.250

Desjardins Fin. Security

500

1.050

1.150

1.450

1.650

1.850

Dundee Bank of Canada

1,000

1.450

1.700

1.900

2.200

2.350

Effort Trust

5,000

1.600

1.900

2.100

2.200

2.350

Empire Life

500

1.250

1.625

1.875

1.875

2.000

Equitable Life

500

.700

1.750

2.000

1.550

1.600

Equitable Trust

5,000

1.500

1.800

2.000

2.100

2.400

Equity Financial Trust

5,000

1.650

1.900

2.100

2.150

2.250

Fiducie Desjardins

1,000

.900

1.200

1.250

1.600

1.750

First Calgary Financial

500

1.250

1.650

1.950

2.000

2.300

FirstOntario Credit Un.

500

1.600

1.650

1.900

2.100

2.400

General Bank of Canada

5,000

1.500

1.750

1.900

2.000

2.200

Great-West Life

500

1.050

1.300

1.450

1.500

1.550

HomEquity Bank

5,000

1.500

1.850

1.900

2.100

2.500

Home Trust Company

5,000

1.650

1.900

2.100

2.250

2.450

ING Bank of Canada (CFN)

5,000

1.500

1.850

2.000

2.150

2.350

Industrial Alliance

1,000

.900

1.450

1.850

1.900

1.950

Korea Exchange Bank

3,500

1.400

1.700

1.850

2.000

2.150

Libro Financial Group

1,000

1.100

1.600

1.750

1.950

2.100

London Life

10,000

1.050

1.300

1.450

1.500

1.550

MAXA Financial

500

2.050

2.250

2.450

2.600

2.850

MCAN Mortgage Corp.

5,000

1.750

2.050

2.000

1.650

1.950

Manulife Bank

2,500

1.400

1.650

2.000

2.250

2.450

Manulife Investments

2,500

1.550

1.800

1.950

1.950

1.950

Manulife Trust

2,500

1.400

1.650

2.000

2.250

2.450

MonCana Bank of Canada

5,000

1.200

1.500

1.700

1.800

1.900

Outlook Financial

1,000

2.050

2.250

2.450

2.600

2.850

PACE Savings & Credit Un

1,000

1.200

1.500

1.600

1.750

2.100

Pacific & Western Bank

1,000

1.660

1.850

2.050

2.150

2.350

Parama Credit Union

1,000

1.600

1.750

2.000

2.100

2.300

Peace Hills Trust

1,000

1.450

1.850

2.050

2.100

2.250

Peoples Trust

5,000

1.660

1.800

1.950

2.000

2.200

President’s Choice Bank

500

.850

1.300

1.700

1.850

2.050

ResMor Trust

10,000

1.400

1.800

2.000

2.100

2.300

Servus Credit Union

1,000

1.150

1.300

1.400

1.600

2.000

Standard Life

1,000

1.500

1.700

1.875

1.950

2.000

Sun Life – Insurance

1,000

1.300

1.600

1.700

1.850

2.000

Sun Life – Trust

1,000

1.500

1.850

2.000

2.200

2.450

Teachers Credit Union

500

1.400

1.650

2.100

2.350

2.500

Windsor Family C.U.

500

.900

1.300

1.400

1.600

2.100

Your Neighbourhood C.U.

500

1.700

1.850

1.950

2.100

2.350

2013 RRSP Interest Rates (GIC registered)

Best RRSP Interest rates as of January 29, 2013

Financial Institution

MinimumDeposit

Term in Years

1

2

3

4

5

Bank of Montreal Agt S.

1,000

.010

.010

.010

.010

.010

Bank of Nova Scotia Agt

1,000

1.450

1.700

1.900

2.200

2.350

Coast Capital Svgs Agt.

1,000

2.000

2.100

2.250

2.350

2.500

Concentra Fin. Agt Ser.

10,000

1.150

1.300

1.400

1.600

2.000

HSBC Bank Canada Agt. S

5,000

1.550

1.900

2.000

2.200

2.400

HSBC Mortgage Corp. Agt

5,000

1.550

1.900

2.000

2.200

2.400

HSBC Trust Agent Servic

5,000

1.550

1.900

2.000

2.200

2.400

ICICI Bank Canada

1,000

.250

.500

1.000

1.000

1.000

Laurentian Bk Agent Ser

1,000

1.450

1.900

2.050

2.150

2.350

Montreal Trust Agt. Ser

1,000

1.450

1.700

1.900

2.200

2.350

NatCan Trust Agent Ser.

500

1.550

1.900

2.050

2.250

2.450

National Bank Agent Ser

500

1.550

1.900

2.050

2.250

2.450

National Trust Agent S.

1,000

1.450

1.700

1.900

2.200

2.350

Scotia Mtge Corp. Agt.

1,000

1.450

1.700

1.900

2.200

2.350

AGF Trust

5,000

1.450

1.900

2.050

2.150

2.350

ATB Financial

500

1.400

2.250

1.750

1.650

2.000

AcceleRate Financial

500

2.050

2.250

2.450

2.600

2.850

Achieva Financial

500

2.050

2.250

2.450

2.600

2.850

Advisor’s Advantage Tr.

1,000

.010

.010

.010

.010

.010

Alterna Bank

500

1.450

1.750

1.950

2.000

2.300

Alterna Savings

500

1.450

1.750

1.950

2.000

2.300

B2B Bank

1,000

1.450

1.900

2.050

2.150

2.350

Caisses Desjardins

500

.900

1.200

1.250

1.600

1.750

Canada Life

1,000

1.050

1.300

1.450

1.500

1.550

Canadian Western Trust

5,000

1.250

1.350

1.600

1.850

2.200

Community Trust

1,000

1.450

1.800

2.000

2.050

2.300

DUCA Financial Services

500

1.450

1.700

1.900

2.000

2.250

Desjardins Fin. Security

500

1.050

1.150

1.450

1.650

1.850

Effort Trust

1,000

1.600

1.900

2.100

2.200

2.350

Empire Life

500

1.250

1.625

1.875

1.875

2.000

Equitable Life

500

.700

1.750

2.000

1.550

1.600

Fiducie Desjardins

1,000

–

1.200

1.250

1.600

1.750

First Calgary Financial

500

1.250

1.650

1.950

2.000

2.300

FirstOntario Credit Un.

500

1.600

1.650

1.900

2.100

2.400

Great-West Life

500

1.050

1.300

1.450

1.500

1.550

Home Trust Company

1,000

1.650

1.900

2.100

2.250

2.450

Industrial Alliance

1,000

.900

1.450

1.850

1.900

1.950

London Life

1,000

1.050

1.300

1.450

1.500

1.550

MCAN Mortgage Corp.

5,000

1.750

2.050

2.000

1.650

1.950

Manulife Bank

2,500

1.400

1.650

2.000

2.250

2.450

Manulife Investments

2,500

1.550

1.800

1.950

1.950

1.950

Outlook Financial

1,000

2.050

2.250

2.450

2.600

2.850

PACE Savings & Credit Un

1,000

1.200

1.500

1.600

1.750

2.100

Pacific & Western Bank

1,000

1.660

1.850

2.050

2.150

2.350

Parama Credit Union

1,000

1.700

1.850

2.100

2.200

2.500

Peace Hills Trust

1,000

1.450

1.850

2.050

2.100

2.250

Peoples Trust

5,000

1.000

1.500

1.750

1.750

2.000

ResMor Trust

10,000

1.400

1.800

2.000

2.100

2.300

Servus Credit Union

500

1.150

1.300

1.400

1.600

2.000

Standard Life

1,000

1.500

1.700

1.875

1.950

2.000

Sun Life – Insurance

1,000

1.300

1.600

1.700

1.850

2.000

Sun Life – Trust

1,000

1.500

1.850

2.000

2.200

2.450

Windsor Family C.U.

500

.900

1.300

1.400

1.600

2.100

Your Neighbourhood C.U.

500

1.700

1.850

1.950

2.100

2.350

REQUEST INFORMATION

If you think that today’s best interest rates in Canada are too low, you may be interested in an annuity that gives a higher monthly income, sometimes 3 to 4 times as much.

Get your free, no risk, no obligation annuity quote from the best insurance companies in Canada.

2013 Male Annuity Rates

2013 Female Annuity Rates

2012 Male Annuity Rates

2012 Female Annuity Rates

2011 Male Annuity Rates

2011 Female Annuity Rates

In examining the returns, it would appear that not much has changed. Those waiting for higher annuity rates to guarantee a higher monthly return are still waiting. Annuity rates depend on a few important factors, all or any of which should not concern the potential annuitants.

What the annuitant needs to be concerned about is their own age and lifestyle. You are not going to live forever and the longer you wait to take your income, the less you will receive. Even if the rates increase, you still need to make up for the payments you did not take and the increase in capital you did not earn.

Annuities in 2013 don’t show any sign of major change, a little bit up and a little bit down, just like 2011 and 2012. Meanwhile you are getting older and losing valuable income if you don’t move.

You are not alone in waiting in the hope that change will come. We have one client, age 70 with a large amount earning less than 1% per year. He is losing money through lack of return and inflation and has been waiting for the rates to increase since 2010. Each year he has been offered progressively less and he has run out of time to maximize his income. Don’t be like this man.

These 2013 annuity rate tables show you the best annuity rates available as of January 1 st, 2013. Some of the top 10 leading annuity providers include BMO Insurance, Canada Life Insurance, Empire Life, Great West Life, Industrial Alliance, La Capitale, Manulife Investments, Standard Life Insurance, Sun Life Assurance Company and Transamerica Life Canada

Below are the bestannuity rate comparison tables which we prepared on November 2, 2012.

The annuity rates shown below are from registered funds. All annuity rates provided are immediate life annuities. We compare annuity rates for males and females. A joint comparison is also available for your spouse. All the annuity rates are based on monthly incomes with a premium of $100,000 of registered funds. The income payments will commence in one month.

The annuity rates shown below are registered monthly annuity rates, based on a premium of $100,000. Published on August 23, 2012.

The tables below will provide a quick idea of the current annuity rates available in Canada and the level of income the annuity companies will offer you. You can at no cost and no obligation request a quote for your specific needs.